Shopper Attitudes about Privacy and the Likelihood of Disabling an RFID Tag

Abstract

Successful omnichannel retailing of consumer goods will probably require item-level RFID tags. Consumer concerns about privacy may limit implementations of item-level tagging and slow omnichannel growth. This study tests consumer reactions to a tag that can be disabled by customers after purchase. Two surveys examined relationships between support for and use of this type of RFID tag and privacy concerns, demographics, and behaviours. Many of the expected relationships were not found, suggesting that simply placing this type of tag on products is unlikely to significantly ameliorate privacy concerns. Targeted communications at individuals in specific segments (e.g., those nervous about new technologies, those actively involved in an organised religion, etc.) that explain the technology and reassure consumers may complement the adoption of these special RFID tags and help overcome the barrier created by privacy concerns.